Industry Welcomes Investment in Seismic Reseach

8 May 2009

Media Release for Immediate Use

Industry Welcomes Government Investment in Seismic Research

The Petroleum Exploration and Production Association today welcomed the announcement of an investment of a further $20 million over 3 years in the acquisition of seismic data by the Crown.

Association Executive Officer John Pfahlert said today that the investment continued a program which had operated for the past 4 years – and which had contributed toward investment by leading New Zealand based exploration companies and their offshore partners in exploration of the Great South Basin.

“Researching our frontier sedimentary basins is an important step toward discovering new resources, and has the capacity to reduce the risk for exploration companies by better defining the subsurface geology before they bid for acerage” said Mr Pfahlert.

Mr Pfahlert said that the Government is currently promoting 2 offshore areas, with a view to let offshore acreage in early 2010. The Crown has an extensive promotional campaign offshore to encourage interest in New Zealand associated with those areas. Those areas offshore Gisborne (Raukumara) and west of Northland (Reinga) have previously been the subject of investment in surveys by the Crown.

Time will tell what the response of investors to the information provided as part of the blocks offer will be, but the Association believes there will be interest from existing New Zealand operators who have every incentive to continue exploring for resources in and around New Zealand.

ENDS

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